Question
The directors of a company can borrow money exceeding
paid up share capital and free reserves by ____________Solution
Section 180. Restrictions on powers of Board: (1) The Board of Directors of a company shall exercise the following powers only with the consent of the company by a special resolution, namely:— (c) to borrow money, where the money to be borrowed, together with the money already borrowed by the company will exceed aggregate of its paid-up share capital, free reserves and securities premium , apart from temporary loans obtained from the company’s bankers in the ordinary course of business
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